UPDATE: Friday, July 17: Raphael Tuju deposited Ksh50 million in court to halt auction of his property in Karen.
UPDATE Thursday, July 9: The High Court turned down an application by Jubilee Secretary-General Raphael Tuju seeking to stop bankruptcy proceedings against him.
Tuju is embroiled in a court case against East African Development Bank (EADB) over a Ksh1.6 billion loan he owes the lender.
The bank had filed a suit seeking to have a company owned by Tuju placed under receivership and allow receiver managers to take over the property.
Jubilee Party Secretary-General Raphael Tuju has been given an ultimatum to save his Ksh1.8 billion property from being placed under receivership.
According to a report by the Daily Nation, Tuju, whose property is at stake over a Ksh1.6 billion loan he owes the East African Development Bank (EADB), was ordered to pay Ksh50 million within 30 days in order to save his company Dari Limited.
In her ruling of Friday, June 19, justices Martha Koome, Mohamed Warsame and Jamila Mohammed stopped the bank from putting the embattled company under receivership.
They, however, noted that if he failed to deposit the money, "the stay orders shall lapse and the application (for appeal) shall stand dismissed."
The money is expected to be deposited in a bank account that his lawyers, as well as those of the bank, have access to.
This ruling came after two judges recused themselves from the case with one of them, Grace Nzioka, noting that the letter demanding her recusal was strongly worded and noted the lack of respect towards courts of law.
“In light of the ruling I delivered on this matter I am finding it personally unable to continue hearing this matter, and if I did not have clarity in my ruling, I am now taking this liberty to personally (without being moved by any party) to recuse myself from hearing this matter,” her statement stated.
Another judge, Justice Francis Tuiyott, had on June 9, stepped down from hearing the case citing personal reasons.
On March 3, Justice Nzioka read out a ruling that allowed EADB's appointed receivers namely, Muniu Thoithi & George Weru to take over the management of a 20-acre prime land in Karen and the luxurious Dari Restaurant.
Both the entities had been used by Tuju as security when he undertook the loan.
However, she ordered the two EADB receivers not to sell off any properties owned by the firm in their attempt to recover the loan.
The case stems from a loan of Ksh933 million that Dari Limited (Tuju's company) had secured from EADB which later accrued an interest exceeding Ksh600 million.
